SouthTrust sells card unit to MBNA

LuisaBeltran

NEW YORK (CBS.MW) -- One day after unveiling its $14.3 billion acquisition by Wachovia, SouthTrust said Tuesday it is selling its credit card business to MBNA.

MBNA
KRB, +13.07%
will own all of SouthTrust's credit card receivables and will manage the card program. The sale includes 245,000 consumer accounts and more than 35,000 business accounts, the companies said.

Terms were not disclosed although SouthTrust's credit card portfolio was valued at $323 million. The deal, subject to regulatory approval, is expected to close by the end of the month.

"The characteristics of cardholders in the SouthTrust portfolio are consistent with the quality of MBNA's existing customers," MBNA Chairman John Cochran said in a statement Tuesday.

On Monday, Wachovia
WB, -1.63%
said it would acquire SouthTrust in a $14.3 billion stock deal. The transaction will give Wachovia bigger exposure in the fast-growing banking market in the Southeast and Texas. See full story.

SouthTrust CEO Wallace Malone had announced the sale of the credit card unit to MBNA on Monday, according to press reports.

Under the deal, MBNA will market credit cards to SouthTrust
SOT.R, +0.49%
customers through SouthTrust's 700 branches throughout the Southeast.

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